iQiyi, a video provider now owned by Baidu, jointly announced with China’s biggest TV manufacturer TCL to launch 48 inch TV+, also known as internet TV.
According to iResearch, iQiyi and PPS (Baidu acquired PPS this May) monthly users reached 358 million, is the biggest video platform in China.
Data showed that TCL has 25.2% market share by volume in 2012, the largest TV manufacturers in China.
iQiyi Continues Its Expansion in Internet TV Market
iQiyi CEO Gong Yu said, video watchers are transferring from PC, mobile devices to TV, traditional TV manufacturers are facing the challenge of living room transition. iQiyi and TCL combined their advantages, aiming at providing better user experience. TV+ is the first product of the cooperation.
China has about 400 million people who were born at 80s and 90s, who have strong need for videos; and it has not been satisfied yet, said by Li Dongsheng, CEO of TCL.
This time, iQiyi and TCL are going to launch two versions, one is called Zunjue. Zunjue’s priced at 4,567 yuan (USD 741). The first batch of Zunjue TV+ sold on Jingdong will have a 1357 yuan bonus(USD 220), which means first people who buy Zunjue TV+ will only have to pay 3210 yuan(USD 521). At the same time, iQiyi are offering bonus for its members, when they buy Zunjue on Jingdong, they will get an extra 500 yuan (USD 81) rebate.
The other version is called Classic, its price is 2,999 yuan (USD 486), and will be on market in November 2013. Compared to Zunjue, Classic will lower its hardware configuration, content services and accessories. Hardware configuration will follow the market standards. In content services, it will decrease exclusive services. Accessories are standards. Classic is to better meet affordable family needs.
Statistic shows that from January to July in 2013, average 48 inch TV price is 5,274 yuan (USD 855). TV+ has better hardware configuration, the actual price would reach 8073 yuan (USD 1309). TV+ has highest cost-effective in internet TV market.
How to Compete With Other Internet TV Manufacturers?
iQiyi and TCL’s TV+ is based on consumer experience, which is quite different from other internet TV manufacturers. They designed a real internet TV which would be loved by consumers. Gong said they were not afraid price war with others at all, because previous products were not good at consumer experience.
TCL first gave out 1,000 TV+ to different groups, including opinion leaders, normal consumers and its own staff to test. And TCL recorded all the feedback from test consumers. Besides, no other internet TV enterprises could reach 3000G cloud bandwidth.
iQiyi and TCL both expressed the plan to keep updating TV+, to make it a perfect internet TV product.